How to Save on Your Car Insurance Premiums

by Shelley Frost, Demand Media

Ask your insurance agent about possible discounts.

Car insurance covers your vehicle, injuries from an accident and your liability if you cause an accident depending on the coverages you choose. If you dread writing out the check for the monthly car insurance premium, consider the options for lowering the cost. Everything from your deductible amount to your driving habits play a role in your auto insurance premiums. Not all strategies to lower the premium will work for every driver. Analyze your own situation to figure out the best way to cut your bill without sacrificing coverage.

Step 1

Request quotes from several different insurance companies since rates vary significantly. Many insurance agents work with different companies so you can get several quotes at once. Compare quotes with the same coverages to get an accurate comparison.

Step 2

Check your credit report to make sure everything is accurate. Most insurance companies use your credit report to help determine rates, so late payments or other negative marks on your credit report could cost you more in insurance premiums. Report any inaccuracies on your credit report and work to pay bills on time to boost your score.

Step 3

Pay your entire insurance premium upfront if you have the money available. This eliminates the fees that most companies charge to pay monthly, plus you might get a discount if you pay in full.

Step 4

Drive cautiously and within the speed limit every time you are behind the wheel to reduce the risk of accidents or tickets. Both accidents and speeding tickets might raise your premium.

Step 5

Purchase all of your insurance policies from one insurance company to get a multipolicy discount. Ask your insurance agent about discounts for safety equipment in the car, such as airbags. Make sure all of the safety features in your car are reflected in the policy.

Step 6

Eliminate comprehensive and collision coverage if your vehicle is older with low value. Consider how much you would receive if you had a claim on the vehicle compared to what you're paying for the comprehensive and collision coverage.

Step 7

Raise the deductible on your car insurance if you have full coverage on the vehicle. Remember, you have to pay the deductible to have any repairs made to your vehicle so you don't want to raise it too high. Make sure you will be able to afford to pay the deductible if you need to file a claim. For example, a $1,000 deductible will lower your premium significantly but you might have difficulty coming up with $1,000 if you need to file a claim.

Step 8

Call your insurance company before purchasing a new car to get a quote. The type of car and the specific model affects the premium, so purchasing a car with cheaper rates saves you overall on auto insurance.

Step 9

Take a defensive driving course to get a discount on your insurance premium. Call your insurance company first to make sure they offer this discount.

References

About the Author

Based in the Midwest, Shelley Frost has been writing parenting and education articles since 2007. Her experience come from teaching, tutoring and managing educational after school programs. Frost worked in insurance and software testing before becoming a writer. She holds a Bachelor of Arts in elementary education with a reading endorsement.